South Korean panel titan LG Display Co. said Monday that it will raise 1.36 trillion won (US$1.05 billion) via a rights offering in an effort to boost the competitiveness of its premium organic light-emitting diode (OLED) panel business.

LG Display will issue some 142 million new common shares at a price of 9,550 won per share and sell them to its shareholders, the company said in a regulatory filing.

The final issue price will be determined on Feb. 29 next year after two estimation processes.

Part of the proceeds will be spent on building facilities to produce small- and mid-size OLED panels used for IT products, mobile devices and cars, LG Display said.

The money will also be used to fund its other OLED business areas as part of efforts to boost their competitiveness and strengthen future growth engines, the company added.

LG Display further said it will use part of the proceeds to pay back debts to bolster its financial health.

Kim Sung-hyun, LG Display's chief financial officer, said the rights offering is aimed at further honing the company's OLED business and improving its financial soundness.

The global OLED market has been growing steadily on a gradual recovery in demand and increasing shipments to makers of TVs, smartphones, IT products and cars.

LG Display's OLED division is expected to account for 50 percent of the company's overall sales this year, up from 40 percent in 2022, with the ratio expected to hover above 60 percent in 2024.

LG Display is an affiliate of LG Group, South Korea's fourth-largest conglomerate, which also has home appliances giant LG Electronics Inc. under its wing. (Yonhap)